The escalating trade spat between the United States and China is impacting the autos sector with car-makers finding it tough to plan longer-term projects, Martin Daum told CNBC.
The escalating trade spat between the United States and China has impacted the autos sector with car-makers finding it increasingly tough to plan longer-term projects, a Daimler board member told CNBC on Wednesday.
„The steel and aluminium prices skyrocketed in the United States, making our tax more expensive there,“ Martin Daum said, adding that the big concern is planning future projects.
„These days, we talk about the products we are going to launch in 2022,2023. We talk to our suppliers who have to invest heavily and they need stability to make those investment decisions.“
Tensions escalated further after Beijing on Tuesday announced retaliatory duties on $60 billion worth of American goods following President Donald Trump ’s latest punitive action. On Monday night, the U. S. leader unveiled a 10 percent tariff on $200 billion worth of Chinese imports that will go into effect next week and eventually rise to 25 percent by year-end.
Last month, in a response to tariffs levied by the Trump administration, China announced 25 percent tariffs on $16 billion in U. S.-made goods. That included the roughly $10 billion in automobiles that Chinese motorists were expected to purchase this year.
„If everyone starts to build a wall and closes economies — we have seen examples of that all over the world — then, ultimately, the one who closes the border suffers,“ Daum told CNBC’s „Squawk Box Europe.
